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The total revenue from a building is R(h) = 5400 * ln(h) where ln(.) is the natural logarithm and h is the building height in floors. The total construction cost is C(h) = 1000 + 3h2 implying an MC of mc(h)=6h and MB of mb(h) = 5400/h. What is the equilibrium number of floors? Show your working and illustrate with one appropriate diagram.
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have acces..
Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group's size.
Charlie has a project for which he had determined a present worth of $56,867. He now has to calculate the IRR for the project, but unfortunately he has lost com
Briefly explain the nature of the open-market operation required to bring down the overnight cash rate by 25 basis points. What is the effect of an inflation target on the position of the monetary-policy rule? Why does the RBA follow an explicit 2–3%..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that al..
Analyze the external benefits to society and their efficient delivery:
If fixed costs are $174,800, how many dollars of revenue must the company generate in order to reach the break-even point?
1. Using the above information, explain and illustrate the factors which caused a rise in the price of baked beans.
Isabel's preferences for consumption C and leisure L can be expressed as U(C, L) = (C – 120) x (L – 90), implying that her marginal utility of leisure is (C – 120) and her marginal utility of consumption is (L – 90). What is her marginal rate of subs..
Suppose you just returned to Albuquerque from a trip to the United Kingdom. You were really impressed with the rail system but it seemed to be much more expensive than the Rail Runner. What is the real difference in the cost of the Rail Runner in the..
The behavioral economist Robert Frank speaks of the bounded nature of rationality in his 2008 interview (Challenge 2008) and discusses the axiom of the independence of irrelevant alternatives in rational choice theory.
1. For each cases a) and b), specify whether the foreign direct investment is horizontal or vertical; in addition, describe whether that investment represents an FDI inflow or outflow from the countries that are mentioned.
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